Are There Really Two Economies?

from the old-vs.-new dept

A year ago everyone was explaining the difference between the new economy and the old economy. In the past few months there have been a bunch of articles (often by the same writers) explaining why anyone thinking their is a dichotomy is stupid. It's funny how quickly some people change. Here, however, is an excellent article explaining why there really are two economies. The basic argument is that we always have an old and a new economy. There are cyclical stocks and there are growth stocks. Each have their own risks associated with them, and investing in them requires different metrics and different skills. However, ignoring the differences can be very dangerous. This is one of the few articles that I've read that actually makes sense about "new economy" vs. "old economy".

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